Fgu Insurance Corporation v. G.P. Sarmiento Trucking Corporation

Summary

FGU Insurance Corporation sought reimbursement from G.P. Sarmiento Trucking Corporation after paying for damaged refrigerators that fell into a canal when GPS's truck collided with another vehicle. The trial court and Court of Appeals dismissed the case, ruling GPS was not a common carrier but a private exclusive hauler, therefore not subject to common carrier presumptions of negligence. The Supreme Court affirmed dismissal against the driver but reversed against GPS, holding that while GPS was indeed not a common carrier, it remained liable under culpa contractual for breach of the carriage contract. The Court emphasized that proof of contract existence and non-performance creates prima facie liability, and GPS failed to establish due diligence or fortuitous event as defenses. This case clarifies the distinction between common and private carriers while reinforcing contractual liability principles in transportation agreements.